Would possibly also honest 31, 2021 / 12: 23 PM IST
SoftBank is “evaluating” selling round $1.5 billion rate of shares in Paytm’s guardian company One97 Communications, in what would be its first tranche of dilution within the corporate’s proposed initial public providing (IPO), sources urged Mint.
This comes amid news that the eight-member board of One97 Communications on Would possibly also honest 28 gave in-precept reputation of Paytm’s planned $3 billion IPO. Aimed for itemizing in November 2021 at valuation of $25-30 billion, this might be the splendid such self-discipline in India yet.
If the portion sale goes by, this might be SoftBank’s largest exit in India after Flipkart.
In line with one offer, reward investors in Paytm can own a “window to promote no longer decrease than one-third of the general stake on offer within the IPO on a pro-rata basis”, in conjunction with that SoftBank “might possibly well also monetise 3-5 percent stake”, mute leaving it with a mute enormous 15 percent stake in One97 Communications, which “will be equipped in substances after the IPO in subsequent concerns”.
Moneycontrol might possibly well also no longer independently study the document.
This offer further acknowledged that SoftBank might possibly well also also offer to promote up no longer decrease than 10 percent shares to the general public within the itemizing, in conjunction with: “As the associated payment of the stakes held by the reward investors is somewhat higher than moderate Indian companies, the portion sale might possibly well also also be accomplished splendid in multiple tranches."
“SoftBank sees Paytm's IPO as a serious liquidity tournament and the three-5 percent stake of SoftBank will be equipped by the offer for sale (OFS) route that will be opened simultaneously with the IPO," the provision added.
SoftBank did no longer reply to queries, as per the document. A spokesperson for Paytm urged the paper the corporate does no longer own info on portion gross sales being planned by reward investors nor own they mentioned this with the board.
